Order 2013-9-1

 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Third day of September, 2013

Raj Travel, Incorporated 

Docket OST 2013-0004

Served September 3, 2013

Violations of 14 CFR 399.84(a) and 399.85(b),

 and 49 U.S.C. § 41712

CONSENT ORDER

This order concerns violations by Raj Travel, Incorporated (Raj Travel) of 14 CFR 

399.84(a), which requires that all airfare and air tour prices advertised include all 

government-imposed taxes and fees and all airline and ticket agent-imposed fees, 14 CFR 

399.85(b), which requires baggage fee disclosures, and the statutory prohibition against 

unfair and deceptive practices and unfair methods of competition, 49 U.S.C. § 41712. It 

directs Raj Travel, a ticket agent,

1 to cease and desist from future similar violations of 

the Department’s full-fare advertising rule 14 CFR 399.84(a), and baggage fee disclosure 

requirement of 14 CFR 399.85(b) and assesses the company $10,000 in civil penalties.

 1 A “ticket agent” is defined as “a person (except an air carrier, a foreign air carrier, or an employee of an 

air carrier or foreign air carrier) that as a principal or agent sells, offers for sale, negotiates for, or holds 

itself out as selling, providing, or arranging for, air transportation.” 49 U.S.C. § 40102(a)(45).
2

Applicable Law

As a ticket agent, Raj Travel is subject to the full fare advertising rule, 14 CFR 399.84(a), 

and the baggage fee disclosure rule, 14 CFR 399.85(b). On April 25, 2011, the 

Department issued a set of rules designed to enhance protections for air travel consumers 

that, among other things, requires carriers and ticket agents to comply with the 

Department’s full-fare advertising rule as written. Under 14 CFR 399.84(a), the 

advertised price must include all government-imposed taxes and fees and all airline and 

ticket agent-imposed fees.2 Although charges included within the single total price listed 

(e.g., government taxes) may be stated separately or through links or “pop ups” on 

websites that display the total price, such charges may not be false or misleading, may 

not be displayed prominently, may not be presented in the same or larger size as the total 

price, and must provide cost information on a per passenger basis that accurately reflects 

the cost of the item covered by the charge. In addition, under 14 CFR 399.85(b), all 

airlines and ticket agents with a website marketed to consumers in the United States, are 

required to clearly and prominently disclose on the first screen in which the carrier offers 

a fare quotation for a specific itinerary selected by a consumer, that additional fees for 

baggage may apply and where consumers can see the applicable baggage fees.

3

 This 

rule, which became effective on January 24, 2012, ensures that consumers are not 

deceived and are given accurate and complete information on which to base their travel 

purchase decisions. Violations of sections 399.84(a) and 399.85(b) constitute unfair and 

deceptive practices in violation of 49 U.S.C. § 41712.

Facts

From at least March 1, 2012, Raj Travel’s website failed to meet the requirements of 14 

CFR 399.84(a) and 399.85(b). Specifically, Raj Travel’s primary web page listed 

numerous fares that did not include taxes and fees, but instead were followed 

immediately by the statement “+ Taxes” and modified by a second statement at the 

bottom of the page directing customers to “Call for Details.” There was no way for the 

consumer to know the full fare without calling. Furthermore, the web page did not 

contain language disclosing, via a link or any other means, the possibility of additional 

baggage fees. Failing to include the additional taxes and fees in the fare quoted on the 

primary web page and failing to provide clear and prominent notice regarding additional 

baggage fees violates 14 CFR 399.84(a) and 399.85(b), and 49 U.S.C. § 41712.

Further, since March 15, 2012, Raj Travel published advertisements in emails and on

social media sent to potential customers via the internet that also failed to state the entire 

price to be paid by the consumer. The emails and social media advertisements stated fare 

 2 76 Fed. Reg. 23110 (April 25, 2011).

3 An agent may refer consumers to airline websites where specific baggage fee information may be 

obtained or to its own site if it displays airline baggage fees. 14 CFR 399.85(b); guidance available at 

http://airconsumer.dot.gov/rules/guidance.htm.
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amounts, but supplemented the statement “+Taxes” with the statement “*** For more 

details please contact our Agents ***”. As such, the advertisements also violated

sections 399.84(a) and 399.85(b), and section 41712.

Mitigation

In mitigation, Raj Travel states that it is a small, ethnic travel agency that serves an 

important need of a community. Its success depends on its reputation in the community. 

Raj Travel states that it believed that it was following what was the industry standard at 

the time regarding advertising. However, it was unaware of the specific requirements of 

the applicable regulation until it was notified by the Office of Aviation Enforcement and 

Proceedings (Enforcement Office). Raj Travel states that once it learned of the 

deficiencies, it modified its ads to comply with the regulations. Raj Travel states that it 

has been in full compliance ever since. It communicated with representatives from the 

Department of Transportation seeking guidance and compliance.

Raj Travel understands that the purpose of the Department’s fare advertising and baggage 

fee disclosure regulations is to protect the public from deceptive advertising practices and 

it supports such regulations. Raj Travel states that it had no malicious intent to deceive 

or harm the public. It was acting in good faith to comply with the applicable 

regulations. Raj Travel believes that it provides an important service to the public at 

large and the Fiji community in particular. 

Decision

The Enforcement Office has carefully considered the information provided by Raj Travel

but continues to believe enforcement action is warranted. The Enforcement Office and 

Raj Travel have reached a settlement of this matter in order to avoid litigation. Without 

admitting or denying the violations described above, Raj Travel consents to the issuance 

of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR

399.84(a) and 399.85(b), and to the assessment of $10,000 in compromise of potential 

civil penalties otherwise due and payable pursuant to 49 U.S.C. § 46301.

The compromise assessment is appropriate considering the nature and extent of the 

violations described herein and serves the public interest. It establishes a strong deterrent 

to future similar unlawful practices by Raj Travel and other ticket agents.

This order is issued under the authority contained in 49 CFR Part 1.

ACCORDINGLY,

1. Based on the above information, we approve this settlement and the provisions of this 

order as being in the public interest;

2. We find that Raj Travel, Incorporated, violated 14 CFR 399.84(a) by advertising fares 

that did not state the full price to be paid for the air transportation;
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3. We find that Raj Travel, Incorporated, violated 14 CFR 399.85(b) by failing to clearly 

and prominently disclose on the first screen of its website in which it offered a fare 

quotation for a specific itinerary selected by a consumer that additional airline fees 

for baggage may apply and where consumers could view the applicable fees;

4. We find that by engaging in the conduct described in ordering paragraph 2 and 3, 

above, Raj Travel, Incorporated, engaged in unfair and deceptive practices and unfair 

methods of competition in violation of 49 U.S.C. § 41712;

5. We order Raj Travel, Incorporated, and all other entities owned or controlled by, or 

under common ownership and control with Raj Travel, Incorporated, its successors, 

affiliates, and assignees, to cease and desist from further violations of 14 CFR

399.84(a) and 399.85(b) and 49 U.S.C. § 41712;

6. We assess Raj Travel, Incorporated, a compromise civil penalty of $10,000 in lieu of 

civil penalties that might otherwise be assessed for the violations found in ordering 

paragraphs 2, 3 and 4, above. Of this total penalty amount, $5,000 shall be due and 

payable in twelve monthly installments. The first payment of $500 is due and payable 

within 30 days of the date of issuance of this consent order. The next ten subsequent 

monthly and equal installments of $410 are due and payable the 10th of each month, 

commencing November 10, 2013 through August 10, 2014. The last monthly 

installment of $400 is due and payable on September 10, 2014. The remaining $5,000 

shall become due and payable if Raj Travel, Incorporated, violates this order’s cease 

and desist provisions during the thirteen months following the service date of this 

order, in which case Raj Travel, Incorporated, also may be subject to further 

enforcement action; and

7. Payment shall be made through Pay.gov to the account of the U.S. Treasury. Payment 

shall be made in accordance with the instructions contained in the attachment to this 

order. Failure to pay the penalty as ordered shall subject Raj Travel, Incorporated, to 

the assessment of interest, penalty, and collection charges under the Debt Collection 

Act and to further enforcement action for failing to comply with this order.
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This order will become a final order of the Department 10 days after its service date 

unless a timely petition for review is filed or the Department takes review on its own 

motion.

BY:

SAMUEL PODBERESKY

Assistant General Counsel for 

 Aviation Enforcement and Proceedings

An electronic version of this document is available at 

www.regulations.gov